June 27th, 2006

OPEN LETTER TO-

Hon. Maxime Bernier, P.C., M.P.
Minister of Industry
C.D. Howe Building, East Tower, 11th Floor
Ottawa, Ontario
K1A 0H5

Dear Minister;

Re: Proposed Takeover of Inco Ltd., and Falconbridge Ltd.
by Phelps Dodge Corporation

Under the Investment Canada Act you have a responsibility to ensure that, "investment in Canada by Canadians and non-Canadians…contributes to economic growth and employment opportunities…in order to ensure benefit to Canada." The question that needs to be asked is whether or not the proposed takeover of Inco Ltd., and Falconbridge Ltd. by Phelps Dodge Corporation, a U.S. enterprise, will achieve this objective? Our Liberal government had tabled changes to the Investment Canada Act that would have given you the option to consider also whether or not any proposed transaction was in Canada's strategic and national interest. Regrettably this legislation was not debated in the House of Commons because of the dissolution of the House for the 2006 general election. You and your government have not re-tabled these important amendments and it is my understanding that you are not inclined to do so.

Inco Ltd. and Falconbridge Ltd. are two of Canada's preeminent mining companies and the proposed takeover by Phelps Dodge Corporation raises some serious issues -

• How many jobs will be lost and how fairly will affected employees be treated?
• Will the head offices of Inco and Falconbridge be dismantled and how will this create a net benefit for Canada?
• Will ore processing continue to be done in Canada, or will 'value added' activities occur mostly outside of Canada?
• Will Phelps Dodge commit to environmentally sustainable mining practices in Canada?
• Will Phelps Dodge commit to transfer pricing amongst associated companies at fair market value?
• What is Phelps Dodge's commitment to mine safety and occupational health?
• How will the takeover impact on union contracts and the union / management relationship?

These are some of the many questions you will need to consider. It is my hope that you will also ponder the spirit of the amendments proposed by our Liberal Government in the last session of Parliament to the Investment Canada Act and factor into your decision the following question - Why it would be in the interest of Canadians to relinquish control of these very important natural resource companies?

I look forward to your response at the earliest opportunity.

Yours sincerely,

Hon. Roy Cullen, P.C., M.P.
Official Opposition Critic for Natural Resources

c.c. Hon. Jean Lapierre, P.C., M.P., Official Opposition Critic for Industry